Sprout Social Inc. SPT shares dropped in the extended session Tuesday after the social-media management software company’s forecast revenue for the current quarter fell short of Wall Street estimates. The company reported a first-quarter loss of $10.3 million, or 19 cents a share, compared with a loss of $9.8 million, or 18 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were 6 cents a share, versus a loss of 3 cents a share in the year-ago period. The company reported that revenue rose 31% to $75.2 million, while annual recurring revenue, or ARR, rose 30% to $309.9 million. Analysts surveyed by FactSet had forecast a loss of a penny a share on revenue of $75.1 million. Sprout forecast revenue between $78.6 million and $78.7 million for the second quarter, and $332 million to $333 million for the year. Analysts had estimated second-quarter revenue of $79.9 million, and $332.2 million for the year. Separately, Sprout said it was extending its strategic partnership “with the new team” at Twitter, under the leadership of Tesla Inc. TSLA and SpaceX CEO Elon Musk. “Twitter is ushering in a new phase of growth and we’re excited to partner closely with Sprout to maximize the value of our ecosystem,” said Chris Park, Twitter’s lead for data revenue and partnerships, in a statement. “We are doubling down on our commitment to innovation in Twitter’s overall product suite and API enhancements that we believe will super charge Twitter’s long term growth.”
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